Do you know when to use a round figure or an exact figure?
14/03/2019 10:25 AM by
The number you give to a client says a lot about how much room there is to move. Knowing the difference and when to use them can be a valuable tool in securing projects.
fixed price project, exact figures should be used. This makes sure there is no ambiguity between what the client is thinking and what you are thinking.
A round figure gives the impression that it was just plucked out of thin air and you can go lower.
Note: Whether round or exact, make sure your dollar amount is excluding GST, and has "+GST" after it.
The project will take about 6 months to complete and cost $200,000+GSTBad Example - You've just made that number up, you can go lower
An exact figure gives the impression that you've done your research and there isn't as much room to move.
The project will take 6 months to complete and cost $204,080+GSTGood Example - Everyone knows exactly what they're in for
For a variable price project, round figures should be used. This gives room for the project scope to be varied with additional items and lends itself more to an agile approach.
The project will take 6 months to complete and cost $204,080+GSTBad Example - This makes it very hard to vary the project as the client will always have this figure in mind
A round figure gives the impression that this is a ball park estimate and that the price will likely change. The project will take about 6 months to complete and cost approximately $200,000+GSTGood Example - Give the client an indication of how much it will approximately cost without committing to the figure
Do you feel this rule needs an update?